Supply Chain Organization on Different Alternatives Models

Store Picking Warehouse Picking Drop-shipping

Store Picking
-The product ship ent flo!s and infor ation flo!s for the "nternet net!ork of each channel#

Store Picking
$Store-picking% consists in satisfying an "nternet consu er&s order off the shelf in the shop closest to his ho e#

Store Picking
- The "nternet consu er places- retailer&s !e' site and the infor ation is sent to the store - According to the levels of e(pected "nternet and traditional consu er de and) the retailer places its o!n orders !ith its suppliers# - "n such a case) all the decisions are ade 'y the retailer * arketed +uantities) inventory) order and delivery anage ent,#

Warehouse Picking
- Dedicated !arehouses are reserved for "nternet orders# The orders are prepared in these !arehouses and are shipped out to "nternet consu ers#

Warehouse Picking
- This type of organization can lead to higher fi(ed costs *invest ent in dedicated !arehouses, and result in longer delivery ti es#

Warehouse Picking
- Warehouse picking syste s needs to . Automated systems - The goal is internal logistics chain in a cost-opti ised and energy efficient !ay# . Storage and conveying - Create order in the !arehouse and in the !arehousing process# /ro ro'ust stacking 'o(es via container concepts through to co ple( racking and storage syste s0 to supply everything fro a single source#

Warehouse Picking
. Workstation - The follo!ing applies e+ually to co ercial) industrial and technical !orkstations0 "t1s the result that counts# . Logistics software -

Store-picking) Warehouse-picking and Drop-shipping

Store Picking

Warehouse Picking

Drop- Shipping

Cost

Cheap

2(pensive

Cheaper than Store Picking

Custo er Service 3evel

Directly connected With the suppllier

Directly connect !ith the supplier

The custo er connect !ith the supplier indirectly 3o!

Margins

4igh

3o!

"nventory "ssues

4ave to locate 'est place the !arehouse ) !hen deliver the orders to the custo ers#

4ave to locate 'est place the !arehouse ) !hen deliver the orders to the custo ers#

"f use !arehouse) fullfilling orders for other erchants# - fle(i'le location

Store Picking

Warehouse Picking

Drop-Shipping

Shipping Co ple(ities

Directly send to the custo ers

Mi(ing ultiple S56s in the sa e 'in location reduces picking productivity

"f you !ork !ith ultiple suppliers ) a nu 'er of different drop shippers Wasn1t your fault) 'ut you had to accept responsi'ility for the istake any!ay7 9-: days

Supplier Side

There is no fault a'out "f there is a pro'le ) the supplier side custo er contact !ith the supplier# 8-9 days 9-: days

Delivering Ti e